FTSE Still Walking Round and Round

Published by Filipe R. Costa on Tue, 08/03/2011 - 20:43
which way

FTSE is going up and down, and up and.... Well it is difficult to tell. The FTSE started higher today but lost steam on US markets opening, marking a low at 5911. Half an hour after US opening, a turnaround occurred, and the FTSE started a recovery to end the day at 5974.76. After all, that means less than 1 point above yesterday's close.

Oil prices are getting lower today after OPEC announced an output increase. Although the situation in Libya is still unresolved, the OPEC announcement gave some fresh air to the markets, that responded very well, with US markets edging higher. At the time of writing, the DOW30 is rising 1.20%.

The pair EUR/USD is taking a breath today. After surpassing 1.40 on the last session, we saw the Euro bouncing back to 1.39.

The question still remaining is: can equity markets hold today's gains? Past days performance says they can't. We are walking round and round...